Commodities

Industrial metals (copper, aluminium, nickel, etc.) daily review (January 15, 2013)

Contributed by Angel Broking

Base metal p rices traded on a negative note yesterday. The decline in prices of base metals was due to the concerns over the slow recovery of the US economy thus reducing the demand for the metals. Weakness in the DX restricted the fall in the metal prices.

In the dome stic markets appreciation in the rupee added to the bearishness on the metal prices.

Copper

Copper price s declined 0.4 percent in the last week. The fall was attributed by the concerns over the slow recovery in the US thereby red ucing the demand for the metal. The industrial production of Euro region also declined 0.3 percent in November as compared to a fall in 1.0 percent which also dampened the demand for the metal. Decline in the LME inventories however restricted the fall in the metal prices.

LME Copper inventories declined 0.2 percent in yesterday's session and stood at 329,725 tonnes on Monday as against 330,450 tonnes on 11th January 2013.

Prices of Copper on LME touched an intraday low of $ 7,990.25 per tonne and closed at $ 8,007.5 /tonne on Monday. In the domestic markets MCX copper declined 1.2 percent tracing bearishness in the international prices and appreciation in the Indian rupee. In the domestic markets prices of Copper on MCX touched an intraday low of Rs. 440.3 per kg and closed at Rs. 440.5 per kg on Monday.

Outlook

In today's session, we except metal prices to trade upwards on the back of expectation of favorable retail sales from the US along with hopes of rise in the GDP of China. US Industrial production and housing sector is also expected to improve which might also support prices to move upwards. In the domestic markets, appreciation in the Indian rupee would restrict the gains in the prices.